Executive Summary
Ladun Investment Company delivered a Q1 2025 performance that showcases seasonality typical of project-driven real estate development. Revenue totaled SAR 319.7 million, down 62.8% quarter-over-quarter from the prior quarter and down 18.4% year-over-year, reflecting timing and recognition of project-related revenue. Despite the sharp quarterly revenue pullback, Ladun maintained profitability with a gross margin of 20.3% and an operating margin of 9.6%, yielding EBITDA of SAR 39.2 million and net income of SAR 10.7 million (EPS SAR 0.0213). The quarter’s results underscore a business with positive operating cash generation potential and disciplined cost control, but highlight significant seasonality and cadence risk in a development-focused portfolio. The company’s SAR 500 million capital base and a diversified development profile position it to capitalize on Saudi Vision 2030-driven real estate demand, provided it can convert pipeline activity into more consistent quarterly revenue and improve visibility on project backlogs and receivables.
Key Performance Indicators
QoQ: -62.76% | YoY:-18.43%
QoQ: -51.70% | YoY:-13.75%
QoQ: -41.75% | YoY:-27.72%
QoQ: -63.61% | YoY:-41.09%
QoQ: -63.65% | YoY:-41.16%
Key Insights
Revenue: SAR 319,706,272; YoY -18.43%; QoQ -62.76%. Gross Profit: SAR 64,807,393; Gross Margin 20.27%; YoY -13.75%; QoQ -51.70%. Operating Income: SAR 30,822,784; Operating Margin 9.64%; YoY -27.72%; QoQ -41.75%. Net Income: SAR 10,660,533; Net Margin 3.33%; YoY -41.09%; QoQ -63.61%. EBITDA: SAR 39,232,971; EBITDA Margin 12.27%. EPS: SAR 0.0213; Weighted Avg Shares: 500,001,547 (diluted 500,000,000)....
Financial Highlights
Revenue: SAR 319,706,272; YoY -18.43%; QoQ -62.76%. Gross Profit: SAR 64,807,393; Gross Margin 20.27%; YoY -13.75%; QoQ -51.70%. Operating Income: SAR 30,822,784; Operating Margin 9.64%; YoY -27.72%; QoQ -41.75%. Net Income: SAR 10,660,533; Net Margin 3.33%; YoY -41.09%; QoQ -63.61%. EBITDA: SAR 39,232,971; EBITDA Margin 12.27%. EPS: SAR 0.0213; Weighted Avg Shares: 500,001,547 (diluted 500,000,000).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
319.71M |
-18.43% |
-62.76% |
| Gross Profit |
64.81M |
-13.75% |
-51.70% |
| Operating Income |
30.82M |
-27.72% |
-41.75% |
| Net Income |
10.66M |
-41.09% |
-63.61% |
| EPS |
0.02 |
-41.16% |
-63.65% |
Management Commentary
Overview themes from management commentary (where available) would typically address: 1) Strategy and pipeline: ongoing focus on high-quality real estate development and partnerships to strengthen the project backlog; 2) Operations and cadence: recognition timing and seasonality influence quarterly results, with margins preserved through ongoing cost discipline; 3) Market conditions: Saudi real estate demand supported by Vision 2030 initiatives and urban development, with competitive dynamics and project delivery risk; 4) Financial discipline: emphasis on capital efficiency and maintaining prudent leverage within the established SAR 500 million capital base.
Forward Guidance
No formal forward guidance is provided in the disclosed data. Given Q1 2025 results, investors should monitor: (a) the trajectory of the project pipeline and backlog to assess revenue cadence in subsequent quarters; (b) working capital dynamics and potential receivables timing that could influence cash flow; (c) cost controls and any realized savings from SG&A optimization; (d) macro and sector-specific factors in Saudi real estate, including regulatory changes, infrastructure spending, and interest rate implications. If Ladun can stabilize quarterly revenue around higher single-digit to low double-digit levels and sustain or improve EBITDA/margins through back-end leverage of fixed costs, the near-term outlook could improve as project execution accelerates.